Earlier quoted context omitted.
It applies to both. It's just the mechanisms for regulation and feedback are different. When you don't have a mechanism for regulation in government, such as democracy, you tend to get very bad government. That's not to suggest that fines or elections are particularly effective but they serve similar purposes.
What about voters ? They are money-seeking. Who would save them from themselves ?
In principle, anyway. Democracy obviously isn't a perfect system.